Sarah's Computer City sells 5,000 boxes of CD- RW compact discs per year.She determined that she pays $50 to process an order for discs.Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of the purchase price.What is her approximate total ordering cost?
A)$865
B)$43
C)$87
D)$433
E)$611

Question

Quizplus · Accepted Answer

The total ordering cost is the sum of the processing cost and the storage cost. The processing cost is $50 per order, and the storage cost is 25% of the purchase price, which is $6 per box. So, the total ordering cost is $50 + 0.25 * $6 = $50 + $1.50 = $51.50. Since the question asks for an approximate answer, the closest choice is $43.

Sarah's Computer City Sells 5,000 Boxes of CD- RW Compact